You could decide to sell your property and use the proceeds of that sale to repay your debts and buy a cheaper property but if you’re keen to remain in your home, you might have considered a debt consolidation mortgage.
Homeowners usually take out this type of loan to consolidate (or combine) debt which can make managing money a little easier. The application process is similar to that of a standard mortgage but the biggest difference will be the focus on the level of equity you own in your property.
Equity is the share of the value of your property that you own, as opposed to that which you borrow as part of a mortgage. If you’ve paid off lots of your mortgage or if your home has increased in value, you’ll have a larger amount of equity and this puts you in a better position when you’re searching for potential remortgage lenders.
There are pro’s and con’s to remortgaging in this way, and it is vital that you get advice for your personal circumstances to ensure this is the most beneficial option for you.
The best way to find the cheapest and most relevant deal for you based on your circumstances is arguably by asking for help from a mortgage broker but some people decide to search on their own by comparing lenders online.
This can be time-consuming as in the UK, there are hundreds of lenders, each with varying rates and rules about who they’ll lend to and under what conditions.
We are here to help you every step of the journey and we will complete all of the relevant paperwork for you, liaising with solicitors and lenders throughout the process, to make sure your Debt Consolidation remortgage goes as smoothly as possible.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage